Last month (September 2024) the Fed cut rates by a ½ percent which was expected by man economists and predicted sessional in the finance sector. Mortgage rates, CD rates, and home equity lines of credit dropped, but suddenly, mortgage rates have increased by almost a full percent. What happened? The job sector report that was released a week ago showing the job market is much stronger than Wall Street predicted. Consequently, rates did an about-face and started climbing. Also, the Fed Chief Powel mentioned the Fed is in no hurry to cut rates again. Many economists were anticipating a cut on November but that cut is up in the air. Now you see how the economy changes with one economic indicator’s results. Forward, the inflation reports, the unemployment reports, and job reports loom largely to give any direction of how the Fed will react.
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Regards,
John Gouley, Creator